Martha,
After reading this, it’s just bad news when you get Chesapeake drill your well. What Chesapeake did here, they leased for 25%, I have no deducts in my lease. But, I get 3 different decimals payment on each well, non are the same. When I called an ask, they said it had something to do with a foreign company that drilled our wells and that was all they knew. Makes no sense to me.
There is an interesting article in the Daily Oklahoman business section today about Continental’s drilling program in the Bakken. They think it could be duplicated in the SCOOP in OK. If so, it opens up about three more zones in the play, all at bigger levels that the higher shales. http://newsok.com/business/energy
Drat! Spellcheck does not catch all smelling errors.
Sr Ron Von, This is a long, but good read on the Anadarko Basin, Woodford shale and Bakken similarities. Let’s hope our Woodford shale is saturated enough for continuous petroleum accumulation.
http://www.readbag.com/certmapper-cr-usgs-data-noga95-prov58-text-p…
Thankx, Martha, and btw, since I am not a Senior or a Senor or a Senoreater
I am assuming that the SR Ron Von indicates my application to be knighted has been approved and I will be tipped with Queenie Lizzie’s sword shortly, joining the likes of Sir Paul MacArtney and Sir George Martin at the Round Table. I wonder what they are serving for lunch.
This comparison with the Bakken has been in the air a year or so, not only for southern Oklahoma, but Logan County as well, and even more promising to some. The more se think we know, the more we realize we do not know a whole lot about what is under our feet. Add to that the fact that Earth is constantly moving underground in ways we just do not understand, and who knows what will it be like in the immediate and the distant future. Plus new technology and equipment, it just boggles the imagination, of you have an imagination. If you don’t, it will always be yesterdays mashed potatoes.
Correction “Sir Ron Von” The article posted leads me to believe the Woodford shale can be replenished, so some mineral owners may be able to live like kings and queens.
Steven,
Rick is right, OCC or Oil company can not override the lease on payment. But, OCC can override your lease on pooling and several other things. Make sure your division order is the right decimal point and that their are no deduction if you had a clause stating no deduction.
If you only received 1/8 on any checks and they have not made up the difference, call them, find out what the person name is that will be taking care of it. Then write a follow up letter restating what you talked about. Always keep copies of letter with any oil company.
My family finally received Division Orders from the company that drilled our section but I am not comfortable with a provision contained therein.
Can anyone explain the meaning of:
“No change of interest is binding on Payor until the recorded copy of the instrument of change or documents satisfactorily evidencing such change is/are furnished to Payor”.
My concern is, although we have already gotten a couple of royalty checks, they’ve only been paying us at a 1/8th royalty when our leases (signed with another company before any of the customary legal hearings, prior to drilling….spacing, pooling etc…) stipulate 1/5th.
The drilling company has said they are going to pay us the 1/5th -----which is in fact reflected in the decimal interest on the division orders just received----as well as the penalty interest on the unpaid balance. Does the above provision release them from paying the 1/5 royalty, the penalty interest, both or none of the above?
If anyone can shed some light, I’d be most appreciative.
Steven,
I’m not an attorney, but I do not believe it changes anything.
§52-570.11. Division orders.
A division order is an instrument for the purpose of directing the distribution of proceeds from the sale of oil, gas, casinghead gas or other related hydrocarbons which warrants in writing the division of interest and the name, address and tax identification number of each interest owner with a provision requiring notice of change of ownership. A division order is executed to enable the first purchaser of the production or holder of proceeds to make remittance of proceeds directly to the owners legally entitled thereto and does not relieve the lessee of any liabilities or obligations under the oil and gas lease. Terms of a division order which conflict with the terms of any oil and gas lease are invalid, unless previously agreed to by the affected parties. This subsection shall only apply to division orders executed on or after July 1, 1989.
Rick and Virginia, Thanks for your input. The decimal point is correct now, from 0.0004340 on the checks they initially sent to 0.00069444 on the Division Order’s we just received
Still, the provision, “No change of interest is binding on Payor until the recorded copy of the instrument of change or documents satisfactorily evidencing such change is/are furnished to Payor”, has me a little concerned.
Does it seem like they are referring to the transfer of the interest to another individual (with this I’d have no problem) or, are they referring to the ‘Royalty Interest’–which we’ve been trying to get them to correct all along, using the 1/5 royalty fraction as stated on our leases instead of 1/8th which they’ve been using to pay us all along?
It would be great getting feedback from some of the other members as well.
Kind Regards
It is my understanding that “No change of interest is binding on Payor until the recorded copy of the instrument of change or documents satisfactorily evidencing such change is/are furnished to Payor” - applies to transfers of interest. My basic understanding of the meaning is “If you guys transfer interest to another party, but no one tells me & I pay the wrong person because no one told me that the interest had been sold, it isn’t my fault, its yours.” If it means anything different, I’d like to know.
Myranda,
That is my understanding also.
Myranda, Rick and Virginia, I can’t thank you enough for your direct and timely comments. Peace and God’s Blessings to you and all the members of the Mineral Rights Forum for taking the time to help others in need.
It all sounds like those two Eskimo geologists on video conferencing, and one is standing on the North Pole, the other is standing on the South Pole, Somebody else butts into the call, and asks them both to point to “up.” They both point directly over their head, but WAIT. One is pointing due north, the other is pointing due south. Proving beyond any doubt that no one knows which way is up.
This is probably an elementary question but I am new at this. I was approached by one company to lease. It was very low and I told him I would think about it. In the mean time another offer came in with a much better bonus and terms. Is it alright for me to be talking to both landmen on the same property? Not sure how to proceed. Thanks
Ronald,
Their is only one up and it’s to heaven.
That may be shy oil is so crooked, it’s down.
Debbie,
The bonus amount being paid may not be the most important part of the transaction. I recommend doing considerable research before entering a lease agreement.
A good book for beginners is “Look Before You Lease” available from NARO here: http://www.naro-us.org/store.
There is also tons of material under the “mineral help” tab and so much more in various location within the discussion groups. Also consider obtaining the services of a “qualified” Mineral Manager, Landman, or Oil and Gas Attorney.
A lease has 2 terms. A primary to explore and initiate production (usually 3 years) and a secondary after production has been obtained. The secondary term can be forever (“as long as hydrocarbons are produced”). When/If your lease enters the secondary term, you have essentially sold your mineral rights and but retaining a commission on the sale of products. Only when production “ceases” will the rights come back to you. Many times, the lease never leaves the primary term because no drilling ever commenced.
There is lease language and clause that manipulates some of this. But that is pretty much the impact of 95% of the leases I see.
This site has some current lease clauses. Others on forum found the clauses helpful.
Debbie,
As long as you haven’t signed anything or told a company you would sign with them. You can negotiate with both of them. Usually they will raise the bonus if you ask for it. I would tell #1 company I have another offer and if they want to raise their offer, they can do it now, but do not tell them the amount the other company is offering. Tell #2 company you want $50 more per A bonus and see what they will do. Then you will have to chose what company you think would be the best to do business with. Sounds like one company is low balling and the other company has came in hoping to get it cheap by raising the offer just a little bit.